There has been a spike in landlords selling their properties at the start of 2025, according to data shared exclusively with This is Money.

It shows the proportion of landlords listing property for sale at the start of this year jumped by almost 50 per cent compared to last year. 

In January, 25,049 homes were listed for sale that were previously rental homes, according to analysis by property data firm TwentyCi, representing 17.4 per cent of all new listings. 

It is a leap compared to 2024, when 11.7 per cent of the homes listed for sale were former rental properties, according to the analysis.

The figures also revealed that the number of rental properties which were sold by landlords to owner occupiers in 2024, therefore disappearing from the private rental market, was 111,696.

Experts put the landlord exodus down to a combination of higher mortgage rates, proposed changes to legislation such as the Renters' Rights Bill and higher taxation.  

Colin Bradshaw, chief executive of TwentyCi, said: 'The rental market remains under significant strain, with tenants across the country facing a chronic shortage of homes. 

'Our analysis reveals that a growing number of landlords are selling up to exit the sector, resulting in a substantial number of properties disappearing from the rental market. 

'This will only worsen the supply crisis and drive rents even higher— and this is before the Renters' Reform Bill has even been enacted.'

The cost of rent is also increasing, with TwentyCi's data suggesting that the average monthly asking rent is now £2,054 per month. 

This is a rise of 35 per cent compared with January 2019.

Why are landlords selling up?

Landlords are selling for a number of reasons. Higher mortgage rates are one factor, but increased taxation and regulation also appear to be prompting some to head for the exit.

The Renters' Rights Bill which is currently going through Parliament is set to axe 'no-fault' evictions, meaning landlords will need to provide a legitimate reason for asking tenants to leave. 

And landlords now face a higher stamp duty bill when buying a new property. 

They already faced a 3 per cent surcharge above what those purchasing a property to live in currently pay, but in October 2024 that went up to 5 per cent, adding thousands of pounds to the cost of buy-to-let and second home purchases.

Babek Ismayil of property buying website OneDome says: 'Landlords are experiencing diminished returns, and there's growing concern about impending legal changes. 

'The shift is mainly being driven by increased tax liabilities, which have made it less financially viable for some landlords to continue holding properties in their personal names.

'Additionally, the abolition of full interest rate relief has had a substantial impact on personally owned buy-to-let properties, leading more landlords to consider selling. 

'Landlords with let-to-buy mortgages are facing the most significant financial pressures.'

Ismayil adds that there are some exceptions, including student properties in popular university towns where there is guaranteed demand.

Some landlords have also sought to switch the ownership structure of their buy-to-lets from their own personal name into a limited company, which can reduce the tax owed in some cases. 

What are estate agents saying? 

We contacted a number of estate agents to ask if the data chimes with what they are seeing in the market.

Ryan Harris, sales manager at Hamptons in Clapham said: 'There's been a steady stream of lettings stock transitioning to the sales market, a pattern we started to notice around 18 months ago.'

Amy Reynolds, head of sales at Richmond, London estate agency Antony Roberts, said landlords have been selling up consistently for the past few years and are not being replaced at the same rate by new entrants. 

'We have four sales offices, all of which have properties either for sale or under offer where the owner is a landlord,' said Reynolds.

'We would like to see landlords coming back into the market but for that to happen they will need tax incentives.'

Agents and surveyors quoted in the latest Royal Institution of Chartered Surveyors market survey also made it clear that there are landlords selling up across the UK.

Richard Franklin, a Rics member in Tenbury Wells, Worcestershire said: 'Demand is high and stock is dwindling with many landlords leaving the sector. This means rents are only heading one way.'

David Parish, a Rics member in Upminster added: 'Many landlords are selling in view of increase in regulation and Government proposals. Good potential tenants are having difficulty in securing properties to rent.'

However, not all agents are seeing a landlord sell-off.

Jeremy Leaf, north London estate agent and a former Rics residential chairman says he hasn't seen many landlords selling up.

'Most landlords are happy to stick with their tenancies at the moment and are adopting a "wait and see" attitude bearing in mind speculation about possible changes to the Renters' Rights Bill before it becomes law,' said Leaf.

'Rents at near or record levels are also persuading landlords to stay put. They can recognise that there are still reasons to do it although perhaps those landlords who have had difficulties with tenants are selling up.

'We have had some clients mention they are considering their options based on imminent rental reform but this has only translated into a handful of sales so far.

'It is not the same picture throughout the country – it varies between areas. A lot of landlords aren't even aware of the upcoming changes and don't understand the implications. 

'While we are explaining to them what's involved, we are finding that many of them are quite shocked, and there is not a great deal of awareness.'